Are there legal limits on paying cash when buying property in Israel?

The Cash Law was enacted to curb the black economy and money laundering, and it sets different ceilings depending on whether a party is a "dealer" (osek) or a private individual. The cap applies to the cash component of a single transaction, not to each installment separately. A real estate developer is a dealer, so the NIS 6,000 ceiling applies to new-build purchases, while a private seller of a second-hand apartment falls under the higher NIS 15,000 individual ceiling. In every case the sums involved dwarf these limits, so Israeli lawyers require the price to pass through a trust account by wire transfer, creating a documented chain of funds.

For a foreign buyer, the cash rules work alongside the bank's anti-money-laundering duties under the Prohibition on Money Laundering Law 5760-2000. Banks demand a source-of-funds declaration before releasing large incoming transfers, and money that cannot be traced simply cannot be used to close. Plan to move funds from a traceable foreign account well before the closing date, because compliance review can take several days. Our guide on how to transfer money to Israel for a property purchase explains the documentation banks expect. Penalties for breaching the cash cap are civil fines calculated as a percentage of the cash paid above the limit.

From the full guide: Transferring Money to Israel for a Property Purchase

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